Performance fees earned by Macquarie Bank Group

06 July 2005

The Macquarie Bank Group (Macquarie) advises that performance fees totalling $A168 million have been earned by the management companies of the following funds: Macquarie Airports (MAp), Macquarie Communications Infrastructure Group (MCG), Macquarie Infrastructure Group (MIG) and Macquarie International Infrastructure Fund Limited (MIIF). For more information please refer to the announcements made by those funds today.

The Bank notes the following:

1. Over the periods to which the MAp, MCG, MIG and MIIF performance fees relate, the total security holder value across the four funds increased by $A4.8 billion[1] compared with total performance fees of $A168 million.

2. The return to investors[2] for the year to 30 June 2005 of Macquarie's key infrastructure funds was:

• MAp    84%
• MCG    83%
• MIG     54%

Macquarie Airports (MAp)

A performance fee of $A36.7 million was earned by Macquarie Airports' (MAp) management companies for the period 1 January 2005 to 30 June 2005. The MAp management companies intend to apply the performance fee to a subscription for MAp securities.

Over the six-month period to 30 June 2005, total MAp security holder value increased by $A854 million[1].

Macquarie Communications Infrastructure Group (MCG)

A performance fee of $A18.2 million was earned by MCG's management company for the period 1 January 2005 to 30 June 2005. The MCG manager will apply the performance fee to a subscription for MCG securities.

Over the six-month period, total MCG security holder value increased by $A503 million[1].

Macquarie Infrastructure Group (MIG)

MIG's management companies earned total performance fees of $A91.59 million for the year ended 30 June 2005 (see table below for detail). The performance fee instalments will be applied to a subscription for MIG securities.

During the year ended 30 June 2005, total MIG securityholder value increased by $A3,355 million[1].

Performance fees, where earned, are payable to MIG's management companies in three equal instalments. The first instalment is payable in the year of outperformance and the second and third are payable one year and two years later respectively, but only where MIG outperforms the benchmark on a cumulative basis over the two and three year periods respectively. A summary of the status of performance fee instalments payable to the management companies as at 30 June 2005 follows:

Macquarie International Infrastructure Fund (MIIF)

A performance fee of $S28.1 million ($A22.1 million) was earned by MIIF's management company for the period 1 April 2005 to 30 June 2005. As disclosed in MIIF's prospectus dated 20 May 2005, the Manager has agreed that any performance fees payable in respect of the forecast period ending 31 December 2005 will be satisfied by the issue of new shares in MIIF.

In the period since MIIF's initial public offer on 27 May 2005, to 30 June 2005, total shareholder value increased by $S128.5 million[1] ($A100 million).

For further information, please contact:

Erica Sibree
Investor Relations
Macquarie Bank Limited
Tel: (612) 8232 5008
Mobile: (614) 1302 6309

Matthew Russell
Public Relations
Macquarie Bank Limited
Tel: (612) 8232 4102
Mobile: (614) 1069 9532

[1]The increase in total security holder value represents the aggregate of the increase in the value of securities on issue at the beginning of the period, plus the increase in the value of new securities issued during the period, plus distributions declared. The A$4.8 billion figure is the aggregate of the respective increases in total security holder value of the four funds (MAp, MCG, MIG and MIIF).

[2]Calculated as an annual internal rate of return after all fees and expenses. Based on all capital raised, distributions made and most recent mark-to-market valuations across all Macquarie infrastructure funds since inception of the infrastructure funds business in December 1994.